U.S. Senator Richard Blumenthal is seeking information from Tether and Nxum Group over reported payments made to the consulting firm co-founded by Bo Hines while Hines was still advising the White House on cryptocurrency policy.
Blumenthal, the senior Democrat on the Senate Permanent Subcommittee on Investigations, sent letters to both companies on Thursday. The inquiry adds another Tether-related matter to the Connecticut senator’s wider examination of the cryptocurrency industry and of political relationships surrounding digital-asset businesses.
According to CoinDesk, the letters follow reports that Nxum received millions of dollars from Tether for consulting work while Hines was involved in shaping policy on crypto and stablecoins. Hines later left government and became Tether’s leading U.S. executive.
What the Senate inquiry is examining
The investigation focuses on the nature and timing of the relationship between Tether and Nxum. Hines co-founded Nxum with his father and another partner. The Wall Street Journal reported last week that the company received substantial consulting payments from Tether during Hines’ period as a White House crypto adviser.
Blumenthal asked Tether and Nxum to provide details about their arrangements. In his letter to Tether chief executive Paulo Ardoino, he described the reported terms and circumstances of the relationship as raising ethical and legal questions. His concern is that payments may have been made to a business connected to a government official who had a direct role in developing cryptocurrency legislation relevant to Tether’s business.
The source material does not indicate that the Senate has reached a final conclusion about whether any law was violated. Tether had not immediately responded to requests for comment cited in the report.
Tether issues USDT, a stablecoin designed to maintain a value close to the U.S. dollar. Stablecoins are digital tokens generally intended to provide a relatively stable unit of value within crypto markets, making questions about their regulation and issuers important to lawmakers examining the industry.
Nxum’s political and crypto connections
CoinDesk had previously reported that Nxum became the main provider of campaign advertising for a political action committee associated with Tether, generating millions of dollars for the firm. The report noted that Nxum had limited experience in politics before taking on that work.
Nxum has also recently hired Harry Jung, another former White House crypto adviser. The White House office responsible for crypto advice is now vacant following the departure of Patrick Witt, who had replaced Hines as its executive director.
Hines’ move from government into a senior role at Tether has added significance to Blumenthal’s questions about the firm’s earlier dealings with Nxum. The senator is seeking information about the business arrangements rather than announcing a finding based on the reports alone.
Blumenthal’s broader focus on Tether and crypto
The Nxum inquiry is part of Blumenthal’s continuing attention to digital assets. His previous work has included scrutiny of former President Donald Trump’s memecoin, crypto supporters connected with Trump’s projects, the Trump family’s World Liberty Financial, Binance and Tether.
He has issued a report concerning Tether’s financial connections to Iran and more recently requested information about the company’s relationship with Cantor Fitzgerald, its U.S. financial partner. Ardoino criticized Blumenthal’s work this week, saying the senator had overlooked important information and released his report to the press before allowing Tether to review it or respond.
Blumenthal is currently the ranking Democrat on the investigations subcommittee because Democrats are in the Senate minority. If the party regains control of the chamber and Blumenthal becomes chair, he would have greater subpoena powers and more influence over the panel’s agenda. The source material says crypto would be a major priority for him in that position.
The prediction market Kalshi currently assigns Democrats a 69% chance of taking back the Senate, according to the source. That figure is a market estimate, not a confirmed election result or a guarantee about future control of the chamber.
Current crypto market picture
Moneyiar market data at 22:58-22:59 on October 22, 2026, showed broad weakness among the listed assets:
- Ethereum was at $2,381.2965, down 4.14% over 24 hours and 2.94% over seven days.
- Tether USDt was at $0.9987291743, down 0.05% over 24 hours and 0.01% over seven days.
- Ethena was at $0.1974967701, down 7.86% over 24 hours and 3.59% over seven days.
- Propy was at $0.3434882929, down 1.22% over 24 hours and 7.35% over seven days.
USDT’s quoted price remained close to $1, while the other listed crypto assets recorded larger declines over the same period. These prices are Moneyiar data at the stated times and represent market conditions alongside, not a conclusion about, the Senate inquiry.
